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by huytersd 866 days ago
Why do this though from McDonalds point of view? Isn’t it better to continue to be known as the mediocre food stop with good prices than an expensive place with mediocre food? Seems short sighted. Their economies of scale must really mean they have huge margins compared to a mom and pop.
3 comments

Gourmet food has higher margins with same amount of cost or less.

They are pushing the limits until people complain. People complained, they reached the limits.

If your customer or employer isn't complaining slight about your price, you're leaving money on the table.

> Why do this though from McDonalds point of view?

Same as every other org that incentives you to use channels that leak your data. They use it to extract more value from you, whether it's selling your data, buying your data from other vendors to augment their first party data, or a combination of both.

To segment your customer base, like any company that offers "basic" and "premium" versions of basically the same thing. In this case, you get some people who walk in, order whatever is on the menu in front of them, then are maybe slightly annoyed by the price but will take out their wallet anyway. On the other side, you have people who are willing to put in a little effort to find the coupons, and buy the more basic menu items and buy the McChicken instead of the McCrispy Chicken Deluxe.

My dark dirty secret, as someone who frequents fast food restaurants, is that McDonalds is... actually not that bad, even good, and at the least it is very consistent and good value (if you use the deals, sometimes even without) and the people who think it's disgusting are just engaging in a little classism and can go home and watch Super Size Me again.